The Uganda Revenue Authority (URA) has initiated a Voluntary Disclosure Program (VDP) aimed at encouraging individuals with offshore incomes and assets to declare their holdings. This tax administration measure, which has been in effect for local taxpayers since 2014, is designed to provide an opportunity for affluent individuals to disclose previously undeclared income and assets.
Key Points:
| Initiative Name: | Voluntary Disclosure Program (VDP) |
|---|---|
| Implementation: | Ongoing since 2014 |
| Objective: | Enhancing tax compliance and broadening the tax base |
Patrick Ocailap, Deputy Secretary to the Treasury, considers URA’s move as a pivotal step towards achieving equitable revenue collection, strengthening domestic income, and expanding the country’s tax base. The VDP window allows taxpayers to reconcile their financial records with the URA until January 2024. Following this period, global financial institutions, including those in Uganda, will enforce the collection of this information.
Ocailap emphasizes the importance of collaboration between banks, investment managers, insurance companies, and their regulators with the URA to ensure the smooth and effective implementation of the new law.
Key Figure:
| Speaker: | Patrick Ocailap, Deputy Secretary to the Treasury |
|---|---|
| Statement: | “Collaboration is crucial for effective implementation.” |
John Musinguzi, the URA Commissioner General, highlights that participants in the Voluntary Disclosure Program will benefit from a full waiver of penalties and interest on the tax paid before Uganda’s first automatic information exchange, scheduled for September 2025.
Exchange of Information Program:
| Program Objective: | Boost voluntary tax compliance, combat tax evasion, and address illicit financial flows |
|---|---|
| Implementation Date: | First automatic information exchange in September 2025 |
Musinguzi underscores that this Exchange of Information program aligns with international standards and obligations outlined in tax information exchange agreements. Additionally, he expresses Uganda’s commitment to fortifying its economic foundation and curbing the outflow of untaxed wealth.